Estimation of Digital Transformation in South Asian Economies: An Application of Broad-Spectrum Approach

Abstract

The study aims to estimate the status of digital transformation (DT) in developing economies. Since there has been a gap in the measurement of digital transformation, this study will help in improving the economic performances of SAARC countries in the future. Herein, a study of the rankings of Digital transformation is being presented by the South Asian Association for Regional Cooperation SAARC (Bangladesh, Bhutan, India, Nepal, the Maldives, Pakistan and Sri Lanka) using a set of indicators under the prevailing scenarios of digital transformation. Composite digital transformation indicators can primarily be grouped into three dimensions: the financial sector digital transformation, industrial sector digital transformation, and services sector digital transformation. Each identified indicator happens to be independent of the other, which could be easily used to put value (individual) based on accurate statistics coupled with the available observation for each country by using PCA (Principal of Component Analysis). The exercise brought about the results that showed that Bangladesh stands at the top of being the most DT country insofar as SAARC nations are being considered. Subsequently, Bangladesh is followed by Sri Lanka. The Maldives has been found to be at the lowest echelon of digital transformation. However, other countries of the SAARC region have been found to lie in the middle of this research’s spectrum. India and Pakistan have consistently been at the centre slot after considering the results of all four scenarios. This framework provides new vistas of opportunities for the policymakers to put their might regarding digital transformation to good use with a view to bringing other regions up insofar as digital transformation is considered.